Consultation Workshop Webcast

1
ConsultationWorkshop/ Webcast 2Revised (Phase
1 2) Waste Electrical Electronic Equipment
(WEEE) Program Development

• April 30, 2009

Slide 1
2
Welcome!

• In-person 60
• Webcast 250
• slides advance automatically
• enlarge slide
• email box for questions/comments on left side of
  webcast console
• use any time
• please include name affiliation
• Archived webcast available for 6 months

Slide 2
3
Todays Agenda (1)

• Consultation process
• Update on Phase 1 Program implementation
• Designated Materials Definitions
• Enhancements to the WEEE Program
• Baseline data targets
• Questions answers
• Break

Slide 3
4
Todays Agenda (2)

• Program costs preliminary budget
• Changes to the fee-setting methodology
• Preliminary Steward fees
• Questions answers
• How to provide feedback comments

Slide 4
5
Draft Preliminary Revised WEEE Program Plan

• Consolidated program to address Phase 1 Phase
  2 WEEE
• Benefits
• deliver single integrated program
• greater efficiency for Stewards service
  providers
• Final deliverable Revised WEEE Program Plan
• due to Minister of the Environment July 10, 2009
• several interim deadlines to be met

Slide 5
6
Plan Submission Timelines
Slide 6
7
Progress to Date

• January 21, 2009 Document for Consultation
  posted to OES website for comment
• February 4, 2009 Consultation 1
• preliminary Consultation Report on OES website
• includes all comments received to date
• April 23, 2009 Draft Preliminary Revised (Phase
  1 2) WEEE Program Plan posted for comment
• Ongoing review with MOE WDO
• Stewards providing industry information

See www.ontarioelectronicstewardship.ca
Slide 7
8
Objectives of Todays Consultation

• Update key stakeholders
• Encourage continued engagement in plan
  development process
• Receive program comments questions answers
  input through survey tool
• Outline key changes resulting from stakeholder
  feedback to date
• Outline proposed enhancements to WEEE Program
• Present preliminary Year 1 budget preliminary
  Steward fees for consultation

Slide 8
9
Next Steps

• Thursday May 7 Deadline for comments
• Comments to be addressed in development of final
  Preliminary Program Plan
• to be submitted to WDO on May 15, 2009

Access to OES Consultation Survey tool
www.ontarioelectronicstewardship.ca
Slide 9
10
Update on Phase 1 Program Implementation

• Carol HochuExecutive Director, OES

Slide 10
11
Successful Launch of Phase 1
Slide 11
12
WEEE Being Diverted From Landfill

• Key performance measures as of April
• 240 applications to be collection sites
• 2 processors approved 8 in different stages of
  review
• gt60 tractor trailers of WEEE sent for processing

Slide 12
13
Successful Launch of the Phase 1 Program

• Do What You Can website www.dowhatyoucan.ca
• 25K visitors in 1st 5 days (to April 5)
• 66K visitors through April 29
• Collection options
• 17 participating municipalities serving 2.5M
  households
• another 2 dozen pending ?adds nearly 900K more
  households
• 37 Salvation Army Thrift Stores - Windsor to
  Ottawa
• 14 round-up events at SEARS Eastern ON stores
  Saturday, April 25
• 17 trailers of WEEE collected
• 17 Staples in Southwestern ON to begin May 1

Slide 13
14
Clutter Ad
Slide 14
15
Gulls Ad
Slide 15
16
In the Months Ahead

• Continue to approve OES collection site expand
  accessibility
• Complete a Northern ON tour to approve add
  collections sites
• Approve OES reuse refurbishment sites
• Plan OES round-up events to fill gaps in
  accessibility
• Initiate RD activities under Phase 1

Slide 16
17
Preliminary Revised (Phase 1 2) WEEE Program
PlanPlanning Development

• Jennifer Russell

Slide 17
18
Reminder

• EEE Electrical Electronic Equipment
• designated materials for which Stewards must
  report pay fees to OES
• WEEE Waste Electrical Electronic Equipment
• waste EEE which OES responsible to manage in
  accordance with specifications outlined in WEEE
  Program Plan

Slide 18
19
Material Categories Definitions

• Stakeholder feedback comments included
• modification to language in EEE definitions
• combined or separated EEE categories
• clarification on inclusions exclusions

Slide 19
20
Rationale for Changes to Definitions

• Group products with successive technology
• 8 track ?cassette ? CD ? digital players
• Recognize technological convergence
• combined printer, fax, phone, scanner
• Moderate fee impact due to changing consumer
  preferences trends
• selling gt40" flat screen TVs today recovering
  older CRT TVs
• Harmonization with Steward definitions
  reporting other provinces

Slide 20
21
Revised Definitions

• Additional modifications due to proposed changes
  to Program Plan revised data sources

Revisions included in new Proposed Material
Categories Definition Handout 1 Also
available at consultation page of
www.ontarioelectronicstewardship.ca
Slide 21
22
Changes to Material Categories Definitions

• Separated Printing Devices from Copiers
  Multi-Function Devices
• Combined Televisions Monitors into single
  Display Devices category
• differentiated by 29" or gt 29" screen size
• Combined Portable Desktop Computers into single
  Computers category
• Refined scope of
• Telephones Telephone Answering Machines
• Computer Peripherals
• Cellular Devices
• Re-integrated EEE designed for commercial
  applications (more to follow)

Slide 22
23
Potential Impact of Changes

• Changes to Steward reporting
• revised categories for Steward reporting
• changes to Phase 1 WEEE product fees on revised
  plan commencement date
• new product fee categories
• inclusion of EEE for commercial applications
• Changes to program operations
• new collection strategies techniques required
  for some categories
• different sorting packaging requirements for
  collection sites
• Changes to overall WEEE Program design
• greater flexibility to incorporate flows of WEEE
  to increase accessibility diversion

Slide 23
24
Feedback Requested

• Please review proposed changes to
• EEE categories
• definition language
• scope of inclusions exclusions
• Questions or comments welcome during QA or
  through written submissions
• Submit comments suggestions online

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 24
25
Enhancements to the WEEE Program

• Gordon Day

Slide 25
26
Program Enhancements

• Revised WEEE Program Plan
• builds on experience gained from Phase I
  implementation
• incorporates stakeholder feedback from
  Consultation 1
• addresses unique collection needs for certain
  Phase 2 WEEE
• improves program flexibility
• increases WEEE diversion options

Slide 26
27
Key Changes

• New collection channels to be incorporated under
  OES program
• Increased flexibility on WEEE packaging
  requirements
• Revised Draft Electronics Recycling Standard for
  primary processors
• Revised methodology for allocating WEEE to
  approved primary processors

Slide 27
28
Handout 2 Overview of WEEE Program Design
Preliminary Flow of Materials OES Funding
Slide 28
29
New Diversion Opportunities

• Direct-shipment
• between WEEE generation sites OES-approved
  processors
• Increased flexibility for WEEE collectors
• approved collectors to provide a range of
  services to WEEE generation sites
• Steward self-management
• incorporate Steward self-management programs into
  OES program

Slide 29
30
Direct-Shipment Option
Handout 2
Slide 30
31
Direct-Shipment Option

• Accommodates direct shipment of WEEE from
  generation site to OES-approved processors
• Allows registered WEEE generation sites to
  maintain existing business relationships
• If pre-approved by OES, WEEE generator will be
  reimbursed for processing costs incurred if sent
  to OES-approved processor
• OES will not cover transportation or other
  value-added costs for direct-ship arrangements

Slide 31
32
Steward Self-Management Option
Handout 2
Slide 32
33
Steward Self-Management Option

• Stewards operating separate WEEE EOL management
  programs may be incorporated in OES program
• more accurate tracking of total diversion
• Stewards already managing these program costs
• lease-return cell phone return programs
• Approval required by OES
• as outlined in draft Preliminary Revised Program
  Plan
• Stewards approved to self-manage WEEE must remit
  Program Compliance Fee
• cover share of common costs to discharge Steward
  obligations

Slide 33
34
Increased Flexibility for Collection
Generation Sites

• Collection sites may use any OES-approved
  containers
• provided by OES
• allow for handling options other than sorting
  packaging requirements prescribed under Phase 1
• Collection incentive (165/tonne) to offset WEEE
  handling costs
• cost allocation under Phase 1 to be completed
• Maintaining existing sorting packaging groups
• OES-approved collectors/collection agents may
  provide services to other generation sites

New Group
Slide 34
35
Approved Collectors/Collection Agents
Handout 2
Slide 35
36
Approved Collectors/Collection Agents

• Registered WEEE generation sites that do not meet
  OES sorting packaging can participate in
  Program
• OES-approved collectors may
• provide sorting packaging services to meet OES
  requirements
• direct WEEE to OES consolidation centre
• receive payment of OES collection incentive
• Commercial arrangements can be made directly
  between registered generation sites
  OES-approved collectors
• no OES involvement required

Slide 36
37
Revised WEEE Allocation Methodology

• Allocate only WEEE received at OES consolidation
  centres
• Competitive RFP process with revised criteria
• Recycling Rate 50 weighting
• Price 30 weighting
• Innovation capacity 20 weighting
• Discontinue regional allocation approach
• Allocation of WEEE by material (display devices
  combined computers other WEEE)
• Extend contract length to 36 months
• OES retain direct control of up to 20 of
  collected WEEE
• RD start-up testing of new processing
  equipment, other applications

Slide 37
38
Reuse Refurbishment Standards

• Clarified original language to close potential
  loophole
• updated Appendix 8a (Section 4.1 4.2)
• Export for reuse /or refurbishment allowed only
  where product performs same function(s) for which
  it was originally designed
• Other minor language changes

Input welcome through OES Consultation Survey
Tool www.ontarioelectronicstewardship.ca
Slide 38
39
New Draft Electronics Recycling Standard (ERS)

• ERS defines environmentally-sound recycling
  criteria as basis for processor audits
• based on Electronic Product Stewardship Canada
  (EPSC) national approach
• developed with industry ENGOs
• requirements for environmental management,
  occupational health safety, downstream
  accountability for waste
• expanded range of materials prohibited from
  export to non-OECD/non-EU countries

Slide 39
40
Modified ERS Requirements

• New requirement to remove batteries, mercury
  bulbs ink toners cartridges
• Maintain documented closure plan with adequate
  financial measures
• Cover any materials stored outside to prevent
  exposure to elements
• Regular independent review of data destruction
  processes
• Additional requirements outlined in Draft ERS

Slide 40
41
Responsibility for Managing Materials Remains
with Designated IFO

• Batteries, fluorescent bulbs tubes, mercury
  switches designated under MHSW program
• Stewardship Ontario will have legal obligation
  for these materials as designated MHSW IFO
• WEEE processors encouraged to register as MHSW
  collection sites upon revised MHSW Program Plan
  approval
• Administrative procedures will be developed
  between OES Stewardship Ontario
• reporting requirements
• reconciling material management costs

Slide 41
42
Providing Input to Program Enhancements

• Review key proposed program enhancements
• new collection channels opportunities
• flexibility for collection sites collectors
• revised allocation methodology for WEEE for
  processing
• changes to the 2 standards
• Questions or comments during QA
• Submit comments suggestions online

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 42
43
Baseline Data Performance Targets

• Gordon Day

Slide 43
44
Baseline Data Performance Targets

• Revised Plan based on best available data
• new inter-provincial study of WEEE commissioned
  for 3 provinces ESABC (BC), SWEEP (SK), ACES
  (NB)
• revised data on products supplied into ON
  extrapolated from national data
• use of limited data available from Phase 1
  program
• revised OES assumptions about material flow
• Steward self-management
• Direct-ship

Slide 44
45
Program Accessibility
Baseline232 permanent sites across 4 ON regions
Detailed Accessibility Targets outlined in
Section 5.1.1 of the Preliminary Revised WEEE
Program Plan
Slide 45
46
Initiatives to Increase Accessibility

• Accessibility to collection services includes
• Permanent depots (municipal or non-municipal)
• Event based collections (quarterly, bi-annual,
  annual)
• Variety of accessibility opportunities
• curbside collection (e.g. Toronto)
• multi-family collection (new collection vehicle
  to serve MF)
• property management (tenants/employees)
• universities/colleges (students)
• Steward take-back returns
• material managed through Steward self-manage or
  direct-ship

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 46
47
Projected WEEE Supplied for Use in Ontario
Detailed WEEE supplied for Use in ON outlined in
Section 3.1 of Draft Preliminary Revised WEEE
Program Plan
Slide 47
48
Projected WEEE Available for Collection
Detailed WEEE available for collection outlined
in Section 3.2 of Draft Preliminary Revised WEEE
Program Plan
Slide 48
49
Material Flow Assumptions

• Draft plan assumes 100 of WEEE collected at
  OES-approved collection sites
• most conservative financial planning assumption
• Feedback requested on
• appropriate estimate of of WEEE to flow via
  Steward self-management channels
• appropriate estimate of of WEEE to flow via
  direct-shipment channels

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 49
50
WEEE Collection Set to Increase
Detailed WEEE Collection Targets outlined in
Section 5.1.4 of the Preliminary Revised WEEE
Program Plan
Slide 50
51
Quantities of WEEE Recycled Also Increase
Detailed WEEE Recycling Targets outlined in
Section 5.1.5 of Preliminary Revised WEEE
Program Plan
Slide 51
52
Feedback on Data Targets

• Please review preliminary data targets
• accessibility to collection sites
• projections of EEE supplied WEEE available for
  collection
• assumptions for of WEEE flowing via new
  channels
• targets
• Questions or comments welcome during QA
• Submit comments suggestions online

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 52
53
Questions?
Slide 53
54
After the Break

• Preliminary Program Costs Budget
• Revised Fee-Setting Methodology
• Preliminary Steward Fees

Slide 54
55
Break
Slide 55
56
Welcome Back!
Slide 56
57
Next Topics

• Preliminary program costs budget
• Revised Fee-setting methodology
• Preliminary Steward fees
• How to provide feedback comments

Slide 57
58
Program Costs Preliminary Budget

• Gordon Day

Slide 58
59
The Big Picture

• Program costs increasing due to
• increased range of WEEE included
• 24 new materials (now 44 in total)
• all different sizes weights
• accessibility for Ontarians improving
• more collection points
• opportunities for services through approved
  collectors
• greater access to WEEE generated in
  industrial/commercial/institutional (ICI) sector
  
• increasing tonnes of WEEE managed with more
  materials collected, transported processed

Slide 59
60
Budget Estimates Preliminary Only

• Recommend conservative approach for potential
  program costs
• economic conditions uncertain
• 100 of ON collected WEEE assumed to be managed
  under OES program
• Final draft plan to make assumptions on percent
  of WEEE likely to be managed through
  direct-shipment Steward self-management
  channels
• reduce program cost estimates

Seek input on appropriate assumptions for percent
of WEEE in direct-shipment Steward
self-management channels
Slide 60
61
Rationale for Display Devices

• Used rationale from inter-provincial study
• Display devices combined into a single category
  with 2 sub-categories on the basis that
• computer monitors are typically 29" in size
• new television sales are trending towards gt29"
• commercial displays look like a television but do
  not have a tuner
• display devices without tuners are being sold as
  televisions
• large percentage of televisions collected for
  recycling are 18"-29"

Slide 61
62
Aligning Costs

• Need to align costs for handling televisions to
  reside with television Stewards selling larger
  units
• OES shifted costs for televisions 29" to the new
  gt29" display sub-category for purposes of setting
  fees
• Monitor costs are isolated fees are reflected
  in new 29" display device category

Slide 62
63
Collection Incentive Payment at 165/tonne

• Detailed activity-based costing yet to be
  initiated
• consider including Phase 2 materials now
• limited experience in Phase 2 material (NS)
• Recession impacts on cost drivers
• fluctuating operating costs (fuel, rents, etc.)
• Collection site registration on target to meet
  Year 1 goals

Slide 63
64
Cost Assumptions for Preliminary Budget
Slide 64
65
Projected Year 1 WEEE Management Costs
Assumes 100 of WEEE material is collected at
OES-approved collection sites managed under OES
WEEE management system. These estimates may be
revised in Draft Final Program Plan.
Slide 65
66
Other OES Year 1 Program Costs
Slide 66
67
Preliminary Year 1 Budget
Note Assumes 100 of WEEE material is collected
at OES-approved Collection sites managed under
the OES WEEE management system. These values may
change.
Slide 67
68
Feedback on Costs Preliminary Budget

• Please review costs preliminary budget
• cost assumptions factors
• costs to manage WEEE in first year of Program
• other Costs in first year of Program
• preliminary Year 1 Budget
• allocation of WEEE likely to be managed via
  direct shipment Steward self-management
• Questions or comments welcome during QA
• Submit comments suggestions online

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 68
69
Still Under Development

• Revised Program Agreement being prepared by WDO
• OES governance model under review
• may provide up to 2 additional seats for
  directors
• criteria under consideration include
• experience skills that can contribute to Board
  Program effectiveness
• knowledge of obligated Phase 2 EEE not currently
  represented on Board

Slide 69
70
Revised Fee-Setting Methodology

• Guy Perry

Slide 70
71
Stewards will Report Remit Fees

• Proposed EEE Sub-Categories

Slide 71
72
Key Issues for Fee-Setting

• Program compliance fee to reflect lower costs
  associated with WEEE self-management options to
  be included under Revised WEEE Program Plan
• Costs to manage obsolete WEEE to be allocated to
  Steward fees of successive EEE technology
• Allocating Phase 1 Program development costs
  across both Phase 1 Phase 2 Stewards
• Allocating Revised Phase 1 2 Program Plan
  development implementation costs to all
  Stewards
• 3-year period to incorporate financial surplus or
  shortfall in subsequent fee calculations

Slide 72
73
Overview of Revised Fee Structure

• Different cost categories to reflect OES
  services
• identification allocation of WEEE plan
  development costs
• payable by all Stewards
• costs for managing WEEE under the program
• payable by all Stewards whose material managed by
  OES
• includes all common costs material-specific
  management costs
• program compliance fee only
• payable by Stewards managing their materials but
  using OES compliance services
• includes share of compliance common program
  costs
• other material-specific management costs managed
  directly by Stewards

Slide 73
74
Primary Differences from Phase 1 Program Fees
Phase 1 Plan One Fee Covering All OES
Activities Expressed /unit
Slide 74
75
Consolidated Plan2 Options
Option 1 Full OES Service All-in Fee Expressed
/unit
Option 2 OES Compliance Only Fee Expressed
/Steward
Slide 75
76
Option 1 Standard All-in Steward Fee

• For designated WEEE managed by OES on behalf of
  the Steward
• Includes all OES program costs
• Expressed as /unit
• Common costs will be incorporated into standard
  all-in fee for full OES service option
• allocated as per all common costs
• 85 based on direct costs 15 shared equally
  among material categories

Slide 76
77
Standard All-in Steward Fee Includes

• Plan development costs
• Common start-up costs such as
• development of protocols standard agreements
• development of material tracking system (MTS)
• OES program administration costs related to
• Steward registration, reporting, payment of fees
• cost allocation fee setting
• reporting material overall program performance
• OES governance
• Material-specific costs for
• registration contracting with collection,
  transportation, consolidation processing
  service providers
• RD
• Do What You Can website
• External charges (e.g. WDO administration MOE
  enforcement)

Slide 77
78
Option 2 Program Compliance Fee

• For Stewards approved for self-management of
  specified WEEE
• Based on share of cost for OES to monitor
  report Steward compliance overall program
  performance
• Operational costs not included
• paid directly by Stewards operating approved
  self-managed programs
• Only Program Compliance Fee allocated to Steward
  self-managed materials
• calculated/assessed as fixed cost-per-Steward

Slide 78
79
Program Compliance Fee-Includes

• Plan development costs
• Common start-up costs
• OES program administration costs related to
• Steward registration, reporting, payment of fees
• Cost allocation fee setting
• Reporting material overall program performance
• OES governance
• External charges
• WDO administration MOE compliance activities

Slide 79
80
Recovery of Phase 1 Program Plan Costs

• Delivering Revised WEEE Program includes
  repayment of costs for Phase 1 program
  development start-up
• Phase 1 Program fees designed to recover plan
  development start-up costs in Year 1 3M
• Some Phase 1 Program development start-up costs
  will be shared across Phase 2 EEE
• Redistributing Phase 1 Program development
  start-up costs
• may result in a credit to Phase 1 EEE fees

Slide 80
81
Revised Program Development Cost

• Development start-up costs of Revised WEEE
  Program Plan will be allocated

• to all materials according to level of activity
  attributable to those materials
• across all materials according to 85 direct cost
  15 equal share of common costs

Slide 81
82
Allocating Costs to Successive Technology

• OES Fee-setting guiding principle
• The costs associated with the management of
  obsolete WEEE will be allocated to the Steward
  Fees for the successive technology
• the obligated EEE device that followed and/or
  replaced, totally or in part, the function or
  intended purpose of the WEEE device.

Slide 82
83
Allocation of Surplus or Shortfall

• Surplus or shortfall beyond amount prescribed
  material specific investments
• allocated to Stewards over 3 years
• intent to moderate any changes to Steward fee
  rates

Slide 83
84
Preliminary Steward Fees (/unit)
Assumes 100 of WEEE collected managed via
OES WEEE management system. Values may change.
Slide 84
85
Key Issues Under Review

• Are the proposed EEE categories appropriate?
• Grouping of monitor televisions under display
  devices
• Grouping of portable desktops under single
  computer
• Separation of printing copier devices
  different fee rates for
• desktop floor-standing Printing Devices
• desktop floor-standing Copiers Multi-Function
  Devices
• Planning projections to use for quantity of WEEE
  under Steward self-management
• e.g. many floor-standing Printing Devices /or
  Copier Multi-Function Devices are managed
  through existing Steward self-management channels
• Allocation of compliance costs within All-in Fee

Slide 85
86
Preliminary Fees Will Change!

• Before submitting Draft Preliminary Revised Plan
  to WDO, OES will
• incorporate industry feedback regarding
  assumptions about WEEE flowing through new
  channels
• Steward self-management ?
• direct-shipment ?
• assess need to modify EEE categories reduce fee
  disparity for Printing Devices Copiers
  Multi-Function Devices
• consult with Stewards about option of Program
  Compliance Fee for Stewards approved for WEEE
  self-management channel

Slide 86
87
Request for Feedback on Fee-Setting

• OES seeks your feedback insight on
• revised fee-setting methodology
• differentiated fees
• preliminary Steward fees

OES Consultation Survey Tool www.ontarioelectronic
stewardship.ca
Slide 87
88
Questions?
Slide 88
89
Closing Items Reminders

• Carol Hochu

Slide 89
90
Looking Forward

• Revised plan to be submitted July 2009
• 2 to 4 weeks to post on Environmental Registry
  for comment
• 30 to 90 day comment period
• MOE review approval time unknown
• Revised plan approval
• earliest late September 2009?
• possibly December 2009 or later?

Slide 90
91
Consultation Survey Tool

• New method to submit feedback comments on
  issues in
• Workshop/ Webcast
• Document for Consultation
• Access survey tool at OES website

www.ontarioelectronicstewardship.ca
Slide 91
92
Accessing the Survey Tool

• Access from OES home page or via Consultation page

Slide 92
93
Completing the Survey

• First page outlines survey submission process,
  tips other information

Slide 93
94
We Want to Hear from You!

• Provide your comments to OES
• Include comments questions
• Upload files documents
• Help OES obtain industry data information

Consultation Survey www.ontarioelectronicstewardsh
ip.ca
Slide 94
95
Reminder

• Comments feedback required by May 7
• Draft Preliminary Revised WEEE Program Plan
• Workshop/Webcast 2 (today)
• Preliminary Revised (Phase 1 2) WEEE Program
  Plan submitted to WDO May 15

Slide 95
96
Thank you!

• www.ontarioelectronicstewardship.ca
• customerservice_at_ontarioelectronicstewardship.ca

Slide 96